In the deregulated Power markets it is necessary to have a appropriate Transmission Pricing methodology that also takes into account “Congestion and Reliability”, in order to ensure an economically viable, equitable, and congestion free power transfer capability, with high reliability and security. This thesis presents results of research conducted on the development of a Decision Making Framework (DMF) of concepts and data analytic and modelling methods for the Reliability benefits Reflective Optimal “cost evaluation for the calculation of Transmission Cost” for composite power systems, using probabilistic methods. The methodology within the DMF devised and reported in this thesis, utilises a full AC Newton-Raphson load flow and a Monte-Carlo approach to determine, Reliability Indices which are then used for the proposed Meta-Analytical Probabilistic Approach (MAPA) for the evaluation and calculation of the Reliability benefit Reflective Optimal Transmission Cost (ROTC), of a transmission system. This DMF includes methods for transmission line embedded cost allocation among transmission transactions, accounting for line capacity-use as well as congestion costing that can be used for pricing using application of Power Transfer Distribution Factor (PTDF) as well as Bialek’s method to determine a methodology which consists of a series of methods and procedures as explained in detail in the thesis for the proposed MAPA for ROTC. The MAPA utilises the Bus Data, Generator Data, Line Data, Reliability Data and Customer Damage Function (CDF) Data for the evaluation of Congestion, Transmission and Reliability costing studies using proposed application of PTDF and other established/proven methods which are then compared, analysed and selected according to the area/state requirements and then integrated to develop ROTC. Case studies involving standard 7-Bus, IEEE 30-Bus and 146-Bus Indian utility test systems are conducted and reported throughout in the relevant sections of the dissertation. There are close correlation between results obtained through proposed application of PTDF method with the Bialek’s and different MW-Mile methods. The novel contributions of this research work are: firstly the application of PTDF method developed for determination of Transmission and Congestion costing, which are further compared with other proved methods. The viability of developed method is explained in the methodology, discussion and conclusion chapters. Secondly the development of comprehensive DMF which helps the decision makers to analyse and decide the selection of a costing approaches according to their requirements. As in the DMF all the costing approaches have been integrated to achieve ROTC. Thirdly the composite methodology for calculating ROTC has been formed into suits of algorithms and MATLAB programs for each part of the DMF, which are further described in the methodology section. Finally the dissertation concludes with suggestions for Future work.

Thesis (Ph. D.)--University of Washington, 2003. / Vita. Includes bibliographical references (leaves 83-88).

Transmission charges are levied against generators and suppliers for their use of transmission networks. The majority of existing transmission charging methods were designed for a system dominated by conventional and controllable generation. The resultant transmission charges reflect network users’ contribution to the system peak. The integration of renewable generation brings fundamental challenges in transmission planning and charging. Main criteria of transmission planning have changed from meeting system peak demand to the trade-offs between operational and investment costs. Transmission charging is required to effectively reflect these trade-offs. This research work aims to develop novel transmission charging methods for low carbon power systems, reflecting the contribution to transmission investments from different generation technologies, different locations, and critically different times. It firstly identifies the key drivers and key conditions of transmission investments under the economic criteria. In the second step, the key drivers and conditions are reflected in the developing of T-LRIC method, ToU-LRIC method and ToU-ICRP method. Major innovations of the proposed methods include 1. reflecting the trade-offs between operational and investments costs by employing investment time horizons to reflect the impacts of system operation on transmission investments (T-LRIC method and ToU-LRIC method). 2. differentiating various generation technologies by firstly quantifying their impacts on the time horizons of network investments, then translating these impacts to transmission charges (T-LRIC method and ToU-LRIC method). 3. providing time-specific transmission charges, in which Time-of-Use periods are identified by clustering time-series congestion costs or transmission charges, thus reflecting the typical conditions of system congestions and the required transmission investments (ToU-LRIC method and ToU-ICRP method). The main benefits from introducing these innovations are i) to guide the short-run behaviours of network users, thus mitigating transmission congestions and promoting efficient utilization of existing networks; ii) to incentivize appropriate generation expansion, thus reducing or deferring costly future transmission investments.

The objective of the proposed research is to develop a cost-effective power flow controller to improve the utilization and reliability of the existing transmission, sub-transmission, and distribution networks. Over the last two decades, electricity consumption and generation have continually grown at an annual rate of around 2.5%. At the same time, investments in the Transmission and Distribution (T&D) infrastructure have steadily declined. Further, it has become increasingly difficult and expensive to build new power lines. As a result, the aging power-grid has become congested and is under stress, resulting in compromised reliability and higher energy costs. In such an environment it becomes important that existing assets are used effectively to achieve highest efficiency. System reliability is sacrosanct and cannot be compromised. Utility system planners are moving from radial towards networked systems to achieve higher reliability, especially under contingency conditions. While enhancing reliability, this has degraded the controllability of the network, as current flow along individual lines can no longer be controlled. The transfer capacity of the system gets limited by the first line that reaches the thermal capacity, even when majority of the lines are operating at a fraction of their capacity. The utilization of the system gets further degraded as the lines are operated with spare capacity to sustain overloads under contingencies. Market efficiency is also sub-optimal, with congestion on key corridors restricting the low-cost generators to connect to the end users, resulting in higher electricity prices for the consumers. The proposed technology offers the capability to realize a controllable meshed-network, with the ability to utilize static and dynamic capacity of the grid to provide system-wide benefits, including- increased line and system-capacity utilization, increased reliability, improved operation under contingencies, and rapid implementation. It would allow a broadening of the energy market, permitting owners to direct how energy flows on their wires, and making it easier to connect to new sources of generation.